The United Auto Workers (UAW) union has escalated its ongoing dispute with Stellantis, by filing unfair labour practice charges against the automaker. This development stems from what the union perceives as violations of the labor contract that was negotiated and agreed upon in the fall of the previous year.
According to the UAW, the charges were filed with the National Labour Relations Board (NLRB) due to Stellantis’s alleged refusal to disclose information regarding its future product plans. This lack of transparency has raised concerns within the union about the company’s commitment to its contractual obligations.
In addition to the NLRB filing, several local chapters of the UAW have initiated contract grievances. These grievances specifically address allegations that Stellantis is attempting to move production of the Dodge Durango out of the United States, a move that would potentially impact American jobs and violate the terms of the labor agreement.
Stellantis, for its part, has stated that it has not yet received the official filing and thus cannot provide a comprehensive response. However, the company maintains that it has not violated the investment commitments outlined in the 2023 contract. A spokesperson for Stellantis emphasised the company’s need to carefully manage the introduction of new vehicles to the market, focusing on enhancing competitiveness and ensuring long-term sustainability and growth. The company asserted that it will communicate its plans to the UAW “at the appropriate time.”
The conflict has taken on a personal tone, with UAW president Shawn Fain publicly criticizing Stellantis’ CEO Carlos Tavares. Fain has accused Tavares of mismanaging the automaker, pointing to declining sales and profits that have led to layoffs and manufacturing cutbacks affecting union members.
“As a united UAW, we intend to enforce our contract, and to make Stellantis keep the promise,” Fain stated, underscoring the union’s determination to hold the company accountable.
A particular point of contention is Stellantis’ delay in implementing a planned billion-dollar investment for a new battery plant and factory in Belvidere, Illinois. The UAW views this delay as another indication that Stellantis is reneging on promises made during last year’s labour negotiations. The issue is so significant that in August, the UAW declared its readiness to launch a nationwide strike over this and other grievances against Stellantis.
This confrontation comes exactly one year after the UAW conducted its first-ever simultaneous strike against all three major American automakers: Stellantis, Ford Motor, and General Motors. That six-week walkout resulted in record-breaking contracts for the union, including the reinstatement of cost-of-living adjustments to protect against inflation and a substantial 25 per cent general wage increase.
The 2023 negotiations also focused heavily on securing the union’s future in the face of the automotive industry’s transition to electric vehicle production. The UAW fought to ensure job security for its members at EV manufacturing and battery plants, such as the proposed facility in Belvidere.
Since the contracts were finalized, Stellantis has implemented layoffs within its factory workforce as part of cost-cutting measures, a move that has further angered union officials. The tension between the company and the union shows no signs of abating, with Fain scheduled to address UAW membership in a livestream on Tuesday evening.
The challenges facing Stellantis extend beyond its relationship with the UAW. The company has recently faced criticism from both its dealers and shareholders, who have expressed concerns about rising inventories and lagging sales. These issues compound the difficulties Stellantis faces as it navigates labour disputes, market pressures, and the broader transformation of the automotive industry.